Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Northrop Grumman Corp

NOC · NYSE · Industrial

Fundamental quality

REASONABLE

69

out of 100

Northrop Grumman Corp is a mature, stable business: it earns money solidly (net margin 10.5%) but grows slowly (2.8% a year). On fundamental quality it scores 69 out of 100, profiling it as a company of reasonable quality. Its weakest area is its growth (revenue +2.8%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Northrop Grumman is the defense contractor of the most advanced stuff: the B-21 stealth bomber, Sentinel intercontinental missiles, satellites and missile defense. Huge, multi-year programs nearly impossible to replicate.

What will shape its future

  • U.S. defense and space budgets, with nuclear deterrence as a priority.
  • The B-21 program: giant future revenue, but with fixed-price tranches that have already hurt.
  • Execution on programs this complex: overruns land on the contractor.

Breakdown by area

I.Growth
49

EPS growth: 9.6% · Revenue growth: 2.8%

II.Profitability
79

Net margin: 10.5% · ROE: 25.1% · ROIC: 12.6%

III.Financial health
68

Net debt/EBITDA: 2.19x · FCF: 8.5%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +4 for dividend strength: 18 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 56%
ROEbeats 68%
Growthbeats 16%
Cash generationbeats 45%
Less debtbeats 51%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Northrop Grumman Corp strengths

  • Outstanding return on equity (ROE of 25.1%): it puts shareholder capital to good use.
  • Solid net margin (10.5%): the business is clearly profitable.
  • Positive free cash flow year after year, a self-funding business.

Northrop Grumman Corp risks and weaknesses

  • Weak revenue growth (2.8% annualized).

Northrop Grumman Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
202036,7993,1892,88510,096
202135,6677,0052,1529,253
202236,6024,8961,46610,300
202339,2902,0562,10010,747
202441,0334,1742,62111,921
202541,9544,1823,30711,293

Between 2020 and 2025, revenue went from $36,799M to $41,954M (+14%) and net income went from $3,189M to $4,182M (+31%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+4.7%
  • Net income+19%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score7069
  • ROE26.7%25.1%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$8.99

per share, yearly

30.9% of earnings

Payout

at least 18 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Northrop Grumman Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Northrop Grumman Corp a good company to invest in?

In terms of business quality, Northrop Grumman Corp scores 69 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Northrop Grumman Corp a profitable company?

Yes. Northrop Grumman Corp shows a net margin of 10.5% and an ROE of 25.1%, a sign of a profitable business.

Does Northrop Grumman Corp have a lot of debt?

A moderate level: its net debt is 2.19 times its EBITDA.

Is Northrop Grumman Corp growing?

Its revenue has grown 2.8% annualized in recent years and its earnings per share 9.6%.

Does Northrop Grumman Corp generate cash?

Yes. It converts about 8.5% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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